South Korea will boost economic cooperation with Iran, it said on Thursday, after sanctions on Iran were lifted earlier this week.

The Ministry of Trade, Industry and Energy said in a statement it will sign a $2 billion contract for trade insurance financing with Iran, while it will also restore Iran's eligibility to be a recipient country for its Economic Development Cooperation Fund.

South Korea will also aim to establish a automobile assembly joint venture with Iran, the ministry said.

South Korea and Iran are due to hold a government-level meeting in Tehran in late February. (Reporting by Christine Kim; Editing by Eric Meijer)